A quick vpn question

[david2017au]

Me and one of my friends have been arguing about does a vpn change your IP address I say it does change it to a different IP while he says it an random encrypted IP I'm wondering who is correct

 

[Ralston18]

FYI:

https://nordvpn.com/blog/how-does-a-vpn-work/

https://thebestvpn.com/what-is-vpn-beginners-guide/